STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT CUSTOMER SUITE, BT CENTRE 81 NEWGATE STREET LONDON EC1A 7AJ KEITH MITCHINSON

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT AGENDA 1.INTRODUCTION AND NOTES OF PREVIOUS MEETING 2.UPDATE ON 2004 GCR, CREDIT VET AND SCHEDULE 11 3.PPP 4.NTS 3 RD PARTY HANDOVER 5.SIA CREDIT VET PROGRESS/OTHER BILLING UPDATES 6.ANY OTHER BUSINESS

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT SIA – PLANNED CONTRACT SCHEDULE Update to Schedule 143 (Carrier Pre-Selection) being discussed with CPS SAD Implementation Working Group

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT GENERAL CONTRACT REVIEW BT Review Notice end June 2004 Six industry Review Notices Those six invited to initial scoping meeting held in mid Sept Five areas identified: Finance – Pricing – Networks – Products - Contracts Initial meetings held on all but Pricing area Further meetings planned Separate sessions planned for (i) System Alterations and (ii) IA/CPS Operator Assistance First industry briefing shortly

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT SIA CREDIT VET TIMETABLE - ONE Review Notice -> Industry Discussions Offer to industry May 02 Oftel Direction February 03 Revised proposal to industry group May 03 Industry discussions June-August New Oftel Directions November 03 “Storyboard” to industry group early March 04

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT SIA CREDIT VET TIMETABLE - TWO March-August Industry Discussions 1 SeptemberLaunch of BT SIA Credit Policy Revised Reference Offer 10 SeptemberOffer of revised text to existing operators 19 September Reminder letter to existing operators October Commercial Managers chase existing operators NovemberReference to Ofcom?

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT SCHEDULE 11 REVIEW PROGRESS (Para 8 of Schedule 11) October 2003 Review Notice Discussion programme – November 2003 to July(?) 2004  Progress/agreement on many areas  Issues re Directory Entry Classification  Progress on change management process BT considers sensible to relaunch - industry briefing 25 October 2004 October 2004 Review Notice this week  Consolidate progress over last year  Resolve Directory Entry Classifications/Change Management issues  New – BT Contact Database; IP guarantees; move to standalone? Interconnect notification shortly Discussion programme 19 November onwards

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT AIT (ARTIFICIAL INFLATION OF TRAFFIC) Discussions stem from 2002 General Contract Review Extensive industry discussion through to June 2003, leaving BT to action As agreed, BT pursued proposals with external legal support Meeting with industry 20 September 2004 BT actioned to prepare draft text 1 November meeting now cancelled 26 November meeting ongoing

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT PPP Determination & Implementation 28 th October 2004 Mick Sharpe BT Wholesale Product Management

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Definition of PPP 2.Products affected. 3.Summary of Ofcom Determination 4. Implementation phases  Interim – credit notes  Strategic – systems development 5.Summary

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Definition of PPP Product Management, Policy and Planning (PPP) is a term given to the administrative costs incurred by BT as a result of providing narrowband services. Charges for narrowband interconnection services, therefore, have two components:  a network based charge for the interconnection service provided over BT's network; and  a PPP charge designed to recover BT's administrative costs of providing the narrowband interconnection service. There are two types of PPP charge:  pence per minute ("ppm") - a fixed PPP charge for each interconnection minute; and  FRIACO - a PPP charge per FRIACO port.

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Products Affected The products affected are:  Transit  Interconnect calls  BT – BT calls  Friaco

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Summary of The Determination on Product Management, Policy and Planning OFCOM Determination on 30 th July 0.012ppm (from ppm) applicable from 01/07/04 to 30/09/04 PPP to be charged across all calls incl. BT Retail All calls to be charged only one element of PPP. Non-product specific bad debt, one off charges excluded from PPP Interconnect Specific Basket (ISB) restructured post Oct 04:  RPI-8.25% overall cap retained  But RPI-0% sub caps respectively on Circuits and PPP Service Centre charges transferred from calls to circuits FRIACO PPP £18.91 per circuit. OFCOM has asked BT to consult with industry over Multi PPP leg calls excluding CPS & IA (as these are already covered)

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT PPP Implementation Overview Phase 1 – Interim actions Credit notes (two types PPP rate reduction & Multi PPP rebate CPS/IA) CPL Changes & Industry briefings Phase 2 –Strategic actions Systems development for Multi PPP leg calls CPS & IA Industry consultation on Multi PPP leg calls other

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT PPP Implementation – Phase 1 Interim Actions Price changes 1 st July 04 – 30 th Sept 04: New PPP Prices published in CPL on 1 st Oct 04 ACCN notification and Industry Briefing issued Credit notes for July and Aug issued 10/09/04 for Multi leg PPP CPS & IA calls and will arise monthly thereafter.

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT PPP Implementation – Phase 1 Interim Actions Price changes from 1 st Oct 04 until 31 st March 05: IX ccts prices changed to recover Service Centre costs as per determination - PPP remains at 0.012ppm. Prices have been published in CPL on 1 st Oct 04 to apply from 1 st Jan 05 ACCN notification on 1 st Oct 04 Invoices with new prices for PPP rate reduction will be issued in early November for October traffic (no more credit notes after this for PPP rate reduction)

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT PPP Implementation – Phase 2 Longer Term Strategic Actions Billing systems development – Planning to implement a system development to eliminate credit notes for Multi PPP CPS & IA calls. Consultation with OLOs over Multi PPP calls excluding CPS & IA – 5 th November at BT City Place Gatwick (invitations issued).

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Summary Communications Industry Briefing on PPP single leg and PPP rate reduction 1 st July 04 – 30 th Sept 04 issued 21 st Sept. Industry Briefing on NCC prices issued. This presentation to SCF Credit notes/Pricing Single PPP element for CPS & IA backdating to 1 st July 04 completed via credit notes Sep 04 onwards. PPP rate reduction backdating to be discharged via the November credit note Friaco price change implemented. Ongoing work areas Systems development for Multi PPP leg calls BT hosted industry consultation arranged for 5 th Nov to resolve Multi PPP leg call identification issues.

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT NTS Third Party Handover 28 th October 2004 Mick Sharpe BT Wholesale Product Management

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Product overview 2.Schedules. 3.Pre-requisites 4.Summary of ordering process

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Product Overview - NTS Third Party Handover

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Product Overview - NTS Third Party Handover The service will apply both to BT originated and Communication Provider originated calls (transit calls). The product will be implemented by reassigning “whole” codes which currently point to the NTS code owner (if existing) to a Third Party Operator as specified in their routing plan. Product features are: Commercial arrangements between the third party operator and the NTS code owner will need to be agreed separately. BT’s commercial arrangements (apart from those for number portability) will be with the Third Party Operator only. The NTS code owner will retain their own porting obligations and porting relationship with BT.

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Schedules The schedules applicable are:  Schedule 311 Operator Free phone calls  Schedule 312 Operator Local Call Fee Access  Schedule 313 Operator Premium Rate Service Calls  Schedule 315 Operator National Calls  Schedule 410 Operator 0871 NTS calls  Schedule 411 Operator 0844 NTS calls  Schedule 102 Transit

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Pre-requisites BT will require that the TPO provides a letter of authority from the code owner to implement the relevant number range(s) on the interconnection between the TPO and BT. The NTS code owner must retain responsibility for their own porting obligations and porting relationship with BT. Interconnection will need to be maintained between the NTS Code owner and BT to meet number portability obligations. Any alterations to ported traffic interconnect routeings between BT and the NTS Code owner will need to be separately agreed. Available only to NTS code owners with established interconnect with BT or to new operators once they have established interconnect with BT (in order to meet portability obligations).

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT Summary of Ordering Process The following give a brief description of how the Communications Provider can place an order for NTS Third Party Handover service: 1.Letter of Authority is required from the code owner. This should be sent to BT via the TPO. 2.Third party operator agrees routing plan with their technical account manager (TAM). 3.Data management amendment (DMA) and routing plan sent to commercial manager (CM) from TPO as well as letter of authority from the NTS code owner as above. 4.CM for TPO arranges contract for service provision and sends to customer for authorising.

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT PPC Credit Vetting Update Charles Walker

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT CURRENT STATUS : Version 6.0 of the policy document was released on 13 th September and included updates of agreed changes from the Industry consultation meeting of the 21 st July and incorporation of some of the comments received from Operators subsequent to that meeting. Over the last few months we have been through a full and thorough consultation process with industry representatives, culminating in that Issue 1.0 of the process documentation which will be issued shortly. BT will be responding in the next few days to the outstanding queries received from a limited number of Operators. Some of their requested changes have been made others have not, and we will document in our response to those Operators why certain changes have not been made.

STANDARD CONTRACT FORUM THURSDAY 28 TH OCTOBER 2004 AT A contract amendment is not required before implementation as there is contract provision already in the PPC contract – clause 10.5 refers. Therefore, BT will not be seeking to gain contract amendment signature before implementation. Notification will be provided of implementation 90 days hence.